Statutory Limits On Compensation Payments
The table starts at age 17, as it is possible for a 17 year old to have 2 years’ service. Compulsory school leaving age can be 153/4 or 154/5 where a child is 16 before 1st September. For all employees age 61 and over, payment remains the same as for age 61. COPYRIGHT © 2021 THE CHARTERED INSTITUTE OF PAYROLL PROFESSIONALS STATUTORY LIMITS ON COMPENSATION PAYMENTS Employment Protection Legislation makes provision to limit both minimum and maximum amounts of compensatory payments that may be awarded by Employment Tribunals, and other amounts paid under employment legislation provisions. The Secretary of State for Employment is required to update the limits as set out under the various Acts of Parliament on an annual basis. Acts of Parliament applicable to compensatory payments are as follows: • Employment Protection (Consolidation) Act 1978 • Trades Union & Labour Relations Act 1992 • Trades Union Reform & Employment Rights Act 1993 (TURERA) • Employment Rights Act 1996 (ERA). Minimum payments are to be applied to the following: • basic compensation award for unfair dismissal • awards to an individual excluded, or expelled, from a trade union. Maximum limits apply to the following payments: • compensatory awards for unfair dismissal • in respect of a debt to which part xii of the ERA 1996 applies and is referable to a period of time • a week’s pay to be used in the calculation of either a basic or additional award of compensation for unfair dismissal or redundancy payments.
The annual cycle of increases is determined by the Consumer Prices Index (CPI). No printing, copying or reproduction permitted.
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